Tilray Releases 11 Million Shares From Lock-Up Agreement

CANADA: Tilray, a global pioneer in cannabis production, research, cultivation and distribution, announced that the Board of Directors of Tilray unanimously approved the pro rata release of 11 million shares of Class 2 common stock held by the former equity holders of Privateer Holdings, Inc.

The shares are being released from lock-up agreements entered into in under the Agreement and Plan of Merger and Reorganization, dated September 9, 2019, by and among Tilray, Privateer, Down River Merger Sub, LLC, a Delaware limited liability company and wholly owned subsidiary of Tilray, and Michael Blue, as the Stockholder Representative. The waiver and release will take effect on April 3, 2020, and the released shares may be sold on or after that date, subject to applicable securities law or contractual limitations.

A previously announced agreement between Tilray and Privateer required that each Privateer equity holder who received the shares of Tilray stock or options to purchase Tilray stock in the merger were subject to a lock-up allowing for the sale of such shares only under certain circumstances over a two-year period beginning December 12, 2020. During the first year following the closing of the merger, shares will be released only pursuant to certain offerings or sales arranged by and at the discretion of Tilray. The pro rata release will be treated as a “permitted sale” under the lock-up agreements, waiving the release requirements with respect to such shares included in the lock-up agreement.

“The shares to be released on April 3, 2020 are part of the previously announced release of Tilray stock over a two-year period,” said Michael Kruteck, Tilray’s Chief Financial Officer. “We believe the staggered release of locked-up shares, as well as strategic and marketed offerings, will manage our public float in an orderly fashion.”

The waiver and release announced today will apply on a pro rata basis to each former Privateer equity holder who received shares of or options to purchase Tilray Class 2 common stock in the merger, including certain Tilray officers and directors.

The waiver and release of the 11 million shares represents approximately 14.5% of the locked-up shares (including for purposes of this percentage calculation shares that remain subject to escrow and/or subject to outstanding assumed stock options).

LDB Issues Product Call For Non-Medical Cannabis

CANADA: The BC Liquor Distribution Branch (LDB) has issued a second product call as part of a continuing effort to expand its wholesale product assortment for non-medical cannabis.

In July, the LDB entered into memorandums of understanding with 32 licensed producers to form its initial wholesale product assortment to cater to the B.C. market directly following legalization of non-medical cannabis on Oct. 17.

“Now that we have finalized our initial product assortment, we’re looking forward to engaging with additional licensed producers that are interested in supplying the B.C. market,” said Blain Lawson, LDB’s general manager and CEO. “There are more and more licensed producers coming online, and we are committed to working with them to ensure our product assortment remains as competitive as possible in order to compete with the illicit market.”

Licensed producers are invited to make submissions for dried cannabis (including pre-rolls), cannabis oils, capsules and seeds that comply with federal requirements, across various product segments.

The product call opens on Aug. 13 and closes on Aug. 31. Product calls will be issued on a regular basis going forward. Submission documents are available to licensed producers HERE.

Smyth: VPD Left To Regulate Medical Marijuana Shops Amid Uncertain Haze Of Legality

CANADA:  It’s police versus pot shops in the escalating battle over “medical” marijuana in Vancouver — and the cops say it’s keeping them busier than a bud grower at harvest time.

Marijuana shops are sprouting like weeds all over the city.

And despite claims that the stores are helping sick people by providing them with medical marijuana grown by green-thumbed angels of mercy, overwhelmed police say that’s not always the case.

“We’ve seen an explosion in the number of stores — we’ve gone from 12 to over 100,” said Sgt. Randy Fincham, spokesman for the Vancouver Police Department.

B.C. Company Buys Ferndale Center For Marijuana Businesses

WASHINGTON:  A Vancouver, B.C., company has bought a business center at 2010 Grandview Road for $1.2 million and plans to lease space to licensed marijuana growers and processors.

Chlormet Technologies bought the 9.7-acre parcel in Ferndale through its Washington state subsidiary PacCan Industries, according to a company news release.

The seller was Excelsior Mortgage Equity Fund of Lake Oswego, Ore.

The property is zoned general business.

The land has a number of buildings on it, Chlormet said. The largest is about 13,000 square feet and is divided into eight bays.

B.C. College Of Physicians Warned New Rules For Medicinal Marijuana Could Spark Legal Challenge

CANADA:  Two Vancouver lawyers who specialize in marijuana have warned that the College of Physicians and Surgeons of B.C. may have put itself at risk of litigation when on May 5 it revised how doctors should counsel patients on medicinal cannabis.

In separate interviews, Kirk Tousaw and John Conroy told the Straight a memo sent to B.C. doctors could result in a court challenge that argues the new rules violate the Canadian Charter of Rights and Freedoms.

Tousaw said the implications could be national. “It’s quite likely something that puts the entire Health Canada program of using physicians as gatekeepers to the lawful possession of cannabis into peril,” he explained.

The memo states that medicinal marijuana is “not appropriate” for patients under the age of 25, for those who have a history of psychosis or a substance-use disorder, or for anybody with a cardiovascular or respiratory disease. It is an official college “standard”, according to the regulator’s website, which means it reflects “relevant legal requirements” that are enforced under the province’s Health Professions Act.

New Pot Prescribing Standards For B.C. Doctors

CANADA:  The BC College of Physicians and Surgeons is looking to weed out the so called ‘pot docs’ by putting in place new standards when it comes to prescribing medical marijuana.

The new rules could make accessing the drug at Vancouver’s more than 80 dispensaries more difficult. The new rules look to keep doctors from prescribing to people under the age of 25. They also forbid doctors from charging patients for marijuana-related medical documents.

Now doctors prescribing the drug must either be, or have the approval of, a patient’s primary physician.

Dana Larson, from Sensible BC, says “I know a lot of people, under 25, who are prescribed Ritalin, who are prescribed opiate pain relievers, other medicines like that, that are far more addictive and far more potentially harmful to the brain and body than cannabis is.”

B.C. Patients Challenging Medical Marijuana Regime In Court

CANADA:  A lawyer representing four patients has told a Federal Court judge that Canada‘s new rules governing medical marijuana are forcing them to choose between their health and their liberty.

John Conroy launched a constitutional challenge on behalf of the patients, who argue the federal government violated their rights when it attempted to ban home growing and instead move production to commercial operations.

His clients say they can’t afford marijuana under the new system, which also doesn’t give them control over the specific strains they use.

Conroy has told a Federal Court judge that because the new regulations make marijuana production illegal, patients must choose between medicine and jail.

 

Vancouver’s Medical Marijuana Dispensaries Aren’t Getting Pot Legally

CANADA:  The dozens of pot dispensaries that have sprouted up in Vancouver over the last few years rely exclusively on illegal suppliers to keep their businesses going because they have no legal means of obtaining medical marijuana.

The Vancouver Police Department is operating under the assumption that many of the city’s marijuana dispensaries are obtaining their pot from people with Health Canada licences to grow small amounts for personal use, said Sgt. Randy Fincham.

“Somehow, they’re getting rid of their marijuana, and somehow the stores at the street level are obtaining their marijuana. The stores don’t have a licence to buy and the homes don’t have a licence to sell,” Fincham said. “It appears that it’s becoming a lucrative business arrangement.”

The B.C. Compassion Club Society only gets its marijuana from trusted growers, said spokeswoman Jamie Shaw, but the arrangement is “not at all” legal.

Nanaimo’s Marijuana Trade Diversifies Echronomy

CANADA:  For better or worse, Canada has all its eggs in one oily basket. These days, that’s not going so well. Forecasts suggest that oil jobs are drying up faster than your girlfriend when you fart. Folks, it’s ugly out there. Thankfully, someone somewhere has a plan to make it better. Tilray, a medical marijuana company, is ready to create nearly 300 jobs in Nanaimo, BC.

Tilray already employs 100 people on Vancouver Island, and is looking for workers to grow plants in its new facility. It is also recruiting people to work in various positions, ranging from security to customer service, and even janitorial work. That sounds professional, especially for a stoner company.

At a time when big businesses are closing doors, relatively small businesses like Tilray are opening doors and minds. Perhaps that’s why many believe that the marijuana business could be Canada’s ticket to a more diverse economy that could survive an oil shock. Marijuana is a job creator in the medical field, and will generate far more jobs if legalized for recreational purposes. Canadians can grow it in facilities across the country, and can produce strong, local economies based on a valuable, renewable resource.

Whistler Medical Marijuana Corp. Recalls Batch Of White Widow Due To Mould

CANADA:  A B.C.-based medical marijuana producer is recalling a batch of pot after finding that it was contaminated with mould.

Whistler Medical Marijuana Corp. says it detected the mould in Lot 0004 of its White Widow strain of marijuana after two customers complained about its appearance. Anyone who received that batch of White Widow — which is also referred to as White Shark and Peace-Maker on the company’s website — should stop using it, the company said.

Health Canada, which licences marijuana producers under its Marihuana for Medical Purposes Regulations, says the company will send out appropriate packaging and a postage paid shipping container to anyone wishing to return the tainted product.

Health Canada says most mould does not present a significant health risk, but can cause infections in those whose immune systems have been weakened by serious illnesses.